会计学-财务会计.11.pptVIP

Payroll Checks At the end of each payroll period, payroll checks are prepared. Each check includes a detachable statement showing the details of how the net pay was computed. PAYROLL CHECK Payroll System Design The inputs into a payroll system may be classified as: Constants, which are data that remain unchanged from payroll to payroll. Employee names Social security numbers Variables, which are data that change from payroll to payroll. Number of hours or days worked Accrued sick leave Internal Controls for Payroll Systems Some examples of payroll controls include the following: If a check-signing machine is used, blank payroll checks and access to the machine should be restricted to prevent their theft or misuse. The hiring and firing of employees should be properly authorized and approved in writing. (continued) (continued) Internal Controls for Payroll Systems All changes in pay rates should be properly authorized and approved in writing. Employees should be observed when arriving for work to verify that employees are “checking in” for work only once and only for themselves. Payroll checks should be distributed by someone other than employee supervisors. A special payroll bank account should be used. Learning Objective Journalize entries for employee fringe benefits, including vacation pay and pensions. 4 Employees’ Fringe Benefits Many companies provide their employees benefits in addition to salary and wages earned. Such fringe benefits may include: Vacation pay (sometimes called compensated absences) Medical benefits Retirement benefits Vacation Pay Assume that employees earn one day of vacation for each month worked. The estimated vacation pay for the year ending December 31 is $325,000. The adjusting entry for the accrued vacation is shown below. Pensions A pension is a cash payment to retired employees. Pension rights are accrued by employees as they work, based on the employer’s pension plan. Two types of pension plans are: Defined contribution plan De